Major US indices rallied yesterday, led by gains in chip stocks. The Nasdaq Composite Index jumped 2.8 per cent, ending a six-day losing streak. The S&P 500 rose almost 1.7 per cent and the Dow Jones Industrial Average settled 1.2 per cent higher.

Meanwhile, the US economy grew at a slower pace in the second quarter this year. According to the advance estimate released by the US Bureau of Economic Analysis (BEA), real gross domestic product increased at an annual rate of 1.5 per cent, down from 2.1 per cent in the first quarter.

A separate report by the BEA showed that personal consumption expenditures (PCE) price index rose 3.7 per cent in June on an annual basis, easing from a 4.1 per cent increase in May. On a monthly basis, it contracted by 0.1 per cent, from a rise of 0.5 per cent in May.